NY A10610

Creates a Deferred Retirement Option Plan (DROP) for eligible police and fire employees who have completed twenty years of creditable service and are employed by state, local, municipal, county, village, or authority employers.

Allows eligible members to defer receipt of retirement benefits while continuing employment for a period of 12 to 60 months, with deferred benefits held by the retirement system and accruing interest at 1.5% annually.

Calculates deferred benefits based on the member's zero option retirement allowance until reaching the maximum service retirement limit, then at 60% of full annual retirement allowance for any additional participation.

Provides three payout options upon completion of DROP: direct payment with tax withholding, rollover to an eligible retirement plan, or a combination of direct payment and rollover as permitted under Internal Revenue Code provisions.

Specifies that members are considered retired upon expiration of the DROP period and outlines treatment of death, disability, or failure to complete service during participation, with the comptroller directed to prescribe implementing regulations.